Selling a car with finance outstanding.

[Ross1988]

Afternoon everyone.

My sister is looking to flog her car. A Lexus hybrid thingy.

Anyway. It has outstanding finance on it but she needs to sell ASAP. Can this be done? Can the buyer give the outstanding money to the financiers?

How does it all work? Any advice is appreciated.

Regards.

Ross

[soad]

nig-gtv said:

Advertise the car. When the buyer comes to pay for the car you then phone the loan company....the buyer speaks to them and clears the finance using his debit card (they often don accept credit cards). Gives you the remaining balance in cash and drives off in his noddy car.

So - you sell the car, and the buyer is happy that the finance has been cleared. Easy - really no big deal! If anyone asks about finance, you just say yes - and that it'll be cleared before he takes the car away. If you want to be doubly comfortable then phone the loan company to confirm this is ok.

Hope this helps.

[qureshia]

Yep - quick call to finance co, payment by debit card over the phone, email back to say the car is now clear of finance, blance to seller, drive away.

I recently bought a car with £30k outstanding, unfortunately it was with land rover finance (who dont do over telephone payments) so had to do a chaps payment, and wait for the accounts department to process, all in all it took 48 hours (money out of my account and no car - bit risky)

Problem is if your sister is in negative equity on the car, also even though the process is easy, it will turn off some buyers so could limit number of buyer.